Jan sold her house on December 31 and took a 320,000 mortgage as part of the payment. The 10 -year mortgage has a 6% nominal interest rate, but it calls for semiannual paymen beginning next Jane 30. Next year Jan must report on Schedule B of her IRS form 1040 the amount of interest that was induded in the two payments she received during the year. a. What is the dolise amount of each payment dan receives? Round your answer to the nearent cent. b. How much interest was included in the first payment? Round your answer to the nearest cent. 5 How much repayment of principal was included? Do not round intermediate calculations. Round your answer to the nearest cent. 3 How do these values change for the second payment? 1. The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to principat increases. 11. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to peincipal decreases. III. The portion of the payment that is applied to interest and the portion of the payment that is applied to principot remains the same throughout the life of the loan. IV. The portion of the payment that is applied to interest dedines, while the portion of the payment that is applied to prinoipal also decines. V. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal also increases. c. How much interest must Jan report on Schedule B for the first year? Do not round intermediate calculations. Round your answer to the nearest cent. 5 Wili her interest income be the same next vear? d. If the payments are constant, why does the amount of interest income change over time? 1. As the loan is amartized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal increases. it. As the loan is amertired (paid off), the beginning balance, hence the interest charpe, dedines and the repayment of princlpal increoses. III. As the losn is acnortied (paid off), the beginning balance, hence the interest charge, declines and the repoyment of principal dedines. IV. As the loan is amortized (paid off), the beginning balance, hence the interest charge, increases and the repayment of principal declines. V. As the loan is amontited (paid off), the beginning balance decines, but the interest charge and the repoyment of principal remain the same